An application to buy back a loan is not an easy procedure to take and sometimes the applicants are refused. What are the reasons that direct financial organizations towards a refusal to buy back credit?
The Bankory sheet
Among the many explanations that may justify a refusal of a request for repurchase of credit is the file and in particular the FICP file, the National file of payment incidents. It lists all the financial incidents faced by individuals. This file is updated by the banks, but also by the courts as well as overindebtedness commissions. The FICP file can relate to various situations:
– Loan repayment delays.
Being filed by the Bankory is indeed problematic when applying for credit and naturally explains that a request for redemption of credit is refused. It should be noted that the Central Check File (FCC) lists people who are no longer allowed to issue checks or pay by credit card.
The debt ratio
A repurchase of credit refused can also be explained by an excessive debt ratio. It is generally accepted that it must not exceed the threshold of 33%. In concrete terms, the monthly income of an applicant must represent at least three times the amount of the monthly loan repayments.
This situation can arise as a result of a loss of income or an increase in monthly payments. In the context of a refusal to buy credit justified by this debt ratio, it is possible to readjust the application so that the terms of repayment correspond more to the budget of the applicant (s). Also, extending the repayment term, at the risk of a rise in the interest rate, proves to be generally the only alternative.
Inadequacy of the acceptance criteria
As when the application concerns a new credit, the repurchase of credit is the subject of a study. The funding agency verifies a number of parameters before giving its consent or refusal to buy back credit:
- the aforementioned elements (delisting and debt ratio);
- profession, level and stability of income;
- the family situation (age, number of children…);
- credits in progress;
- the loan concerned by the request.
If the applicants have accumulated the credits, if their professional or family situation is less favorable, the bank can mean a refusal to buy credit.